loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

TechM in Q1FY27 reported a revenue up 2.2% QoQ

ICICIdirect Research 17 Jul 2026 DISCLAIMER

News: TechM in Q1FY27 reported a revenue of US$1,660 mn, up 2.2% QoQ/ 6.1% YoY (up 2.6% QoQ/ 6.6% YoY in CC terms) while organic revenue grew 2.5% QoQ CC and 6.2% YoY CC. Geography wise on a QoQ basis Europe (27.5% of mix) and ROW (23.9% of the mix) grew by 8% and 0.6% while America (48.6% of mix) de-grew by 0.1%. Segment wise on a QoQ basis, Others (3.4% of the mix), Manufacturing (19% of the mix), BFSI (17% of the mix), Healthcare & Lifesciences (7.3% of the mix) and Retail transport & logistics (8% of the mix) grew by 18.9%, 9%, 2.7%, 2.2% and 1.2% while Hi-Tech & Media (13% of the mix) and Communications (32% of the mix) declined by 2% and 1.3%. EBIT margin was up ~ 60 bps QoQ/~335 bps YoY at 14.4%  led by volume growth and savings from Project Fortius, partially offset by Comviva seasonality and business mix. Reported PAT stood at ₹1,465 crore, up 8.2% QoQ/ 28.4% YoY. It won a new deal TCV of US$ 1,078 mn, up 0.5% QoQ/ up 33.3% YoY. The total headcount decreased by 863 employees to 1,46,760. The attrition rate at 11.8%, was down ~30 bps QoQ.

View: TechM delivered another strong quarter with broad-based growth, continued margin expansion and healthy deal wins, reflecting steady execution of its turnaround strategy. Management highlighted healthy demand in BFSI(payments modernization, wealth platforms and AI transformation), Manufacturing (AI-led engineering and data platforms), Healthcare (vendor consolidation and AI-led discretionary spending) and Retail (digital transformation), while Technology & Media continues to face spending volatility and the macro environment remains mixed. It also reiterated confidence of delivering above peer-average revenue growth and ~15% EBIT margin in FY27, supported by ramp-up of recent large deals, improving client mining and sustained benefits from Project Fortius (margin improvement). However, management also cautioned that margins could face near-term headwinds from wage hikes planned in a phased manner from Q2, investments in AI capabilities and go-to-market initiatives which are expected to be largely offset by operational efficiencies and productivity improvements. Increasing traction in AI-led transformation through Project Helix,  enterprise AI adoption moving from pilots to production along with strong deal momentum and operational discipline,  should support profitable growth over the coming quarters despite macro uncertainties in select verticals.

Impact: Positive

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere